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Goodwill and Intangible Assets | 6 Months Ended
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Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | NOTE 8 – Goodwill and Intangible Assets The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):
|  | December 31, 2022 |  |  | Adjustments |  |  | Write-off |  |  | June 30, 2023 |
Goodwill |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 335,009 |  |  | $ | — |  |  | $ | — |  |  | $ | 335,009 |
Institutional Group |  |  | 991,539 |  |  |  | 55,864 |  |  |  | — |  |  |  | 1,047,403 |
|  | $ | 1,326,548 |  |  | $ | 55,864 |  |  | $ | — |  |  | $ | 1,382,412 |
|  | December 31, 2022 |  |  | Adjustments |  |  | Amortization |  |  | June 30, 2023 |
Intangible assets |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 33,499 |  |  | $ | — |  |  | $ | (2,464 | ) |  | $ | 31,035 |
Institutional Group |  |  | 97,090 |  |  |  | 5,500 |  |  |  | (6,606 | ) |  |  | 95,984 |
|  | $ | 130,589 |  |  | $ | 5,500 |  |  | $ | (9,070 | ) |  | $ | 127,019 |
The adjustments to goodwill and intangible assets during the six months ended June 30, 2023 are primarily attributable to the acquisition of Torreya Partners, LLC (“Torreya”). On March 1, 2023, the Company acquired Torreya, an independent M&A and private capital advisory firm that serves the global life sciences industry. Consideration for this acquisition consisted of cash from operations. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Accordingly, goodwill was measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. We recorded $61.2 million of goodwill and intangible assets in the consolidated statement of financial condition, which has been allocated to our company’s Institutional Group segment. The allocation of the purchase price of Torreya is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of Torreya as of the acquisition date and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from that reflected herein as a result of future measurement period adjustments and the recording of identified intangible assets. The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of Torreya’s business, its employees, and customer base. A significant amount of the goodwill is expected to be deductible for federal income tax purposes. Intangible assets consist of acquired customer relationships, trade names, non-compete agreements, core deposits, and investment banking backlog that are amortized over their contractual or determined useful lives. Intangible assets as of June 30, 2023 and December 31, 2022 were as follows (in thousands):
|  | June 30, 2023 |  |  | December 31, 2022 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Customer relationships |  | $ | 227,405 |  |  | $ | 116,189 |  |  | $ | 225,631 |  |  | $ | 109,216 |
Trade names |  |  | 30,359 |  |  |  | 21,625 |  |  |  | 30,359 |  |  |  | 20,861 |
Non-compete agreements |  |  | 10,071 |  |  |  | 7,753 |  |  |  | 9,440 |  |  |  | 7,158 |
Core deposits |  |  | 8,615 |  |  |  | 7,812 |  |  |  | 8,615 |  |  |  | 7,389 |
Investment banking backlog |  |  | 8,913 |  |  |  | 4,965 |  |  |  | 5,545 |  |  |  | 4,377 |
|  | $ | 285,363 |  |  | $ | 158,344 |  |  | $ | 279,590 |  |  | $ | 149,001 |
Amortization expense related to intangible assets was $4.6 million and $5.5 million for the three months ended June 30, 2023 and 2022, respectively. Amortization expense related to intangible assets was $9.1 million and $10.6 million for the six months ended June 30, 2023 and 2022, respectively. Amortization expense is included in other operating expenses in the consolidated statements of operations. The weighted-average remaining lives of the following intangible assets at June 30, 2023, are: customer relationships, 10.0 years; trade names, 7.5 years; non-compete agreements, 4.7 years; core deposits, 1.6 years; and investment banking backlog, 5.1 years. We have an intangible asset that is not subject to amortization and is, therefore, not included in the table below. As of June 30, 2023, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal year |  |  |
Remainder of 2023 |  | $ | 8,960 |
2024 |  |  | 17,170 |
2025 |  |  | 14,952 |
2026 |  |  | 13,362 |
2027 |  |  | 11,963 |
Thereafter |  |  | 58,494 |
|  | $ | 124,901 |

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